[Premium] Rupee Update

Here's the chart of USD/INR we've been keeping track of. Prices had held their long-term breakout level near 69 but failed to break above resistance near 72.25. After several months of consolidation with momentum remaining in a bullish range, it appears prices are ready for another breakout attempt.

Click on chart to enlarge view.

Given the Rupee's weakness we're seeing against the other pairs we track, we think this breakout in USD/INR will be successful and begin its next intermediate-term move towards 77.50. As long as prices are above their recent lows of 70.50 on a closing basis then we can be long and looking for new highs over the next several months.

Here's JPY/INR also holding support near 0.6520 and beginning to work its way higher. As long as prices are above their recent lows of 0.6480 then we can be long and looking for a move to new highs. Ultimately our price target in the next 3-6 months is up near 0.696, but we'll reevaluate as prices test potential resistance areas along the way.

GBP/INR has flagged tightly following its breakout above the downtrend line from its 2018 highs. While it looks to be headed higher with a target near 96, it's tough to define our risk here so we'd prefer to trade the USD or JPY pair. With that said, its bullish price and momentum characteristics confirm the broad-based weakness we're seeing in the Rupee.

The same thing can be said for EUR/INR. Right now it's in no man's land so it's difficult to define our risk, but the bias is to the upside as prices flag with momentum in a bullish range.

Overall it looks like the Rupee is ready to continue its downward trend relative to these four major currencies. From a reward/risk perspective, the most well-defined setups remain in the USD/INR and JPY/INR, so we'd be erring on the long side of those while keeping an eye on GBP/INR and EUR/INR for informational/confirmation purposes.

Thanks for reading and please let us know if you have any questions.

Allstarcharts Team